1.1 INTRODUCTION ABOUT THE TOPIC
A share or stock is a document issued by a company, which entitles its holder to be one of the owners of the company. A share is issued by a company or can be purchased from the stock market. The stock exchange were one physical market place where the agents of buyers and sellers operated through the auction process. These are being replaced with electronic exchanges where buyers and sellers are connected only by computer over a telecommunication network According to the securities contract regulation act, 1956, which is the main law governing stock exchanges in India “ stock exchange means any body of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities “. Every investment is characterized by return & risk. Investors intuitively understand the concept of risk. A person making an investment expects to get some return from the investment in the future. But, as future is uncertain, so is the future expected return. It is this uncertainty associated with the returns from an investment that introduces risk into an investment. Risk arises where there is a possibility of variation between expectation and realization with regard to an investment. IT stock exchange :
CNX IT is an index comprised of the most liquid and large capitalization IT stocks traded on the NSE engaged in the business of software or hardware. CNX IT index provides investors and market intermediaries with an appropriate benchmark that captures the performance of the IT segment of the market. The index is a market capitalization weighted index with base date being 1st January 1996 and base index value being 1000. Companies selected in the index have to be IT stocks which should rank high in terms of market value represented by their market capitalization and liquidity. CNX IT index...